The Full Form of GDP is Gross Domestic Product in India. Gross Domestic Product is the money value of all the goods and services produced within a country during a specified period (usually 12 months or a year).
GDP generally indicates the economic health and living standard of people. For example, higher GDP indicates the high living standard of people. Indian GDP is based on mainly three sectors i.e. service sector, industry sector, agriculture, and allied sector.
The basic formula to calculate GDP is the sum of all the private consumption, gross investment, and government spending in addition to Exports minus imports.
GDP = Private Consumption + Gross Investment + Government Spending + Net Exports
Net Exports= Exports - Imports
If anything produced Geographical Boundaries of a country then someone must have paid money for that. According to the Expenditure method, we can derive-
GDP = C + I + G + X - M
C = Consumption expenditure
I = Investment
G = Government spending
X = Exports
M = Imports
(X – M) = Net export
In the Income method, we calculate GDP on total Income earned by the factors of production, i.e. labor and capital within a country’s geographical boundaries.
GDP= A + T - S
A = GDP at Factor expense
T = Taxes
S = Subsidies
The output method estimates the monetary value of all the goods and services produced within the country. To prevent complicated calculation of GDP due to price level adjustments, GDP is calculated at constant prices or actual GDP.
GDP= B - T + S
B – GDP at a constant prize or actual GDP
T – Taxes
S – Subsidies
Q1. What is the Full Form of GDP in India?
The Full Form of GDP in India is a Gross Domestic Product.
Q2. What are the 3 types of GDP?
The three types of GDP are: Real Gross Domestic Product Nominal Gross Domestic Product Gross National Product.
Q3. Which country has the highest GDP?
USA has the highest GDP approx 20 trillion.
Q4. What is GDP?
Gross Domestic Product is the money value of all the goods and services produced within a country during a specified period (usually 12 months or a year).